ESCORTS 2017-18 Annual Report Analysis

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ESCORTS 2017-18 Annual Report Analysis
Mon, 31 Dec

ESCORTS has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

ESCORTS Income Statement Analysis

  • Operating income during the year rose 22.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 78.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.9% in FY18 as against 7.5% in FY17.
  • Depreciation charges increased by 15.5% and finance costs decreased by 8.4% YoY, respectively.
  • Other income grew by 38.7% YoY.
  • Net profit for the year grew by 102.1% YoY.
  • Net profit margins during the year grew from 4.1% in FY17 to 6.8% in FY18.

ESCORTS Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 41,453 50,593 22.0%
Other income Rs m 471 653 38.7%
Total Revenues Rs m 41,924 51,247 22.2%
Gross profit Rs m 3,096 5,536 78.8%
Depreciation Rs m 634 732 15.5%
Interest Rs m 322 295 -8.4%
Profit before tax Rs m 2,610 5,162 97.8%
Tax Rs m 773 1,625 110.3%
Profit after tax Rs m 1,715 3,466 102.1%
Gross profit margin % 7.5 10.9
Effective tax rate % 29.6 31.5
Net profit margin % 4.1 6.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ESCORTS Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 17 billion as compared to Rs 15 billion in FY17, thereby witnessing an increase of 14.8%.
  • Long-term debt down at Rs 147 million as compared to Rs 586 million during FY17, a fall of 74.9%.
  • Current assets rose 48% and stood at Rs 21 billion, while fixed assets rose 2% and stood at Rs 17 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 40 billion as against Rs 32 billion during FY17, thereby witnessing a growth of 24%.

ESCORTS Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 16,209 22,151 36.7
 
Current Liabilities Rs m 14,671 16,841 14.8
Long-term Debt Rs m 586 147 -74.9
Total Liabilities Rs m 31,992 39,733 24.2
 
Current assets Rs m 14,454 21,439 48.3
Fixed Assets Rs m 16,169 16,542 2.3
Total Assets Rs m 31,992 39,733 24.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ESCORTS Cash Flow Statement Analysis

  • ESCORTS's cash flow from operating activities (CFO) during FY18 stood at Rs 5 billion, an improvement of 51.4% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -4 billion, an improvement of 142.1% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -10 million, an improvement of 99% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 849 million from the Rs 361 million net cash flows seen during FY17.

ESCORTS Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 3,038 4,601 51.4%
Cash Flow from Investing Activities Rs m -1,546 -3,742 -
Cash Flow from Financing Activities Rs m -1,131 -10 -
Net Cash Flow Rs m 361 849 135.2%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for ESCORTS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 28.3, an improvement from the EPS of Rs 14.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 704.5, stands at 20.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.0 times, while the price to sales ratio stands at 1.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 20.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 338.2 412.7
TTM Earnings per share Rs 14.0 28.3
Diluted earnings per share Rs 14.0 28.3
Price to Cash Flow x 36.6 20.6
TTM P/E ratio x 20.2 20.2
Price / Book Value ratio x 2.6 4.0
Market Cap Rs m 86,358 86,358
Dividends per share (Unadj.) Rs 1.5 2.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for ESCORTS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.3x during FY18, from 1.0x during FY17. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 18.5x during FY18, from 9.1x during FY17. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company improved and stood at 15.6% during FY18, from 10.6% during FY18. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 24.2% during FY18, from 16.7% during FY17. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company improved and stood at 9.5% during FY18, from 6.4% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 1.0 1.3
Debtors’ Days Days 40 43
Interest coverage x 9.1 18.5
Debt to equity ratio x 0.0 0.0
Return on assets % 6.4 9.5
Return on equity % 10.6 15.6
Return on capital employed % 16.7 24.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how ESCORTS has performed over the last 5 years, please visit here.

ESCORTS Share Price Performance

Over the last one year, ESCORTS share price has moved up from Rs 787.2 to Rs 704.5, registering a loss of Rs 82.7 or around 10.5%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 20,911.0 (up 0.4%). Over the last one year it has moved down from 26,751.2 to 20,911.0, a loss of 5,840 points (down 21.8%).

Overall, the S&P BSE SENSEX is up 6.6% over the year.

(To know more, check out historical annual results for ESCORTS and quarterly results for ESCORTS)

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